What is UNUS SED LEO (LEO)?
UNUS SED LEO (LEO) is a utility token issued by iFinex Inc., the parent company of the Bitfinex cryptocurrency exchange. Launched in May 2019 through a $1 billion private token sale, LEO provides trading fee discounts on Bitfinex and features a unique deflationary mechanism: iFinex uses a minimum of 27% of its consolidated gross revenues to buy back and burn LEO tokens monthly until none remain. LEO exists on Ethereum as an ERC-20 token.
Key Facts
What is UNUS SED LEO?
UNUS SED LEO is a utility token created by iFinex Inc., the parent company of the Bitfinex cryptocurrency exchange, one of the oldest and largest crypto trading platforms. Unlike governance tokens that provide voting rights or stablecoins that track a fiat currency, LEO is designed primarily as a utility token that grants holders fee discounts and other benefits within the iFinex ecosystem.
The name 'UNUS SED LEO' comes from a Latin fable attributed to Aesop. In the story, a fox boasts about having many cubs, to which a lioness replies: 'One, but a lion' (unus sed leo). The phrase symbolizes quality over quantity — a fitting motto for a token backed by one of the crypto industry's most established exchange operators.
What makes LEO distinctive among exchange tokens is its deflationary design. iFinex commits to using a minimum of 27% of its consolidated gross revenues each month to purchase LEO at market prices and permanently burn them. This process continues until every LEO token has been destroyed, making it one of the few major tokens designed to eventually reach a zero supply.
Who Created LEO? A Brief History
Origins & the Crypto Capital Crisis
In early 2019, iFinex Inc. faced a significant financial challenge. Crypto Capital Corp., a third-party payment processor used by Bitfinex, had approximately $850 million in funds seized by authorities in Poland, Portugal, and the United States.
This left a hole in Bitfinex's reserves and drew scrutiny from the New York Attorney General's office, which alleged that Bitfinex had used Tether reserves to cover the shortfall.
To address this, iFinex conducted a private token sale in May 2019, raising $1 billion by selling 1 billion LEO tokens at $1 each. The sale was completed in roughly 10 days, with participation from major investors in the cryptocurrency space. The funds were used to recapitalize iFinex and resolve the financial situation.
Resolution & Recovery
iFinex ultimately recovered a substantial portion of the frozen funds. In February 2022, the U.S. Department of Justice seized approximately $3.6 billion in Bitcoin connected to the 2016 Bitfinex hack — the largest financial seizure in DOJ history at that time.
iFinex has since received significant restitution from these recovered funds, strengthening its financial position and accelerating LEO burns.
Key Milestones
- • 2019: May 2019 — $1B private token sale completed in ~10 days
- • 2019: 2019 — First monthly LEO burn events begin
- • 2021: 2021 — NY Attorney General settlement: iFinex pays $18.5M fine, no admission of wrongdoing
- • 2022: February 2022 — DOJ seizes $3.6B in Bitcoin from 2016 Bitfinex hack
- • 2023: 2023 — Accelerated burns as iFinex receives hack restitution funds
- • 2024: 2024 — Over 60% of original LEO supply burned; Paolo Ardoino becomes Tether CEO
How LEO Works
LEO's core mechanism is its deflationary token burn, which directly links the token's economics to iFinex's business performance.
The Revenue-Based Burn
Every month, iFinex uses a minimum of 27% of its consolidated gross revenues from the previous month to purchase LEO tokens on the open market. These tokens are then sent to a burn address, permanently removing them from circulation. The burn events are verifiable on-chain on both Ethereum and EOS blockchains.
This mechanism creates consistent buy pressure: the more revenue Bitfinex and other iFinex entities generate, the more LEO gets purchased and burned. As Tether (USDT) — also an iFinex entity — has become the most widely used stablecoin, iFinex's revenues have grown substantially, accelerating the burn rate.
Hack Recovery & Burn Acceleration
In addition to the 27% revenue burn, iFinex committed to using recovered funds from the 2016 Bitfinex hack to buy back and burn LEO. After the DOJ's $3.6 billion Bitcoin seizure and subsequent restitution to iFinex, this created significant additional burn events beyond the regular monthly schedule.
Supply Trajectory
LEO launched with 1 billion tokens. Through continuous monthly burns and special recovery-related burns, over 60% of the total supply has been permanently destroyed. At the current burn rate, all remaining LEO tokens will eventually be burned — making LEO one of the only major tokens designed to reach zero supply.
Fee Discounts & Utility
Holding LEO on Bitfinex provides tiered trading fee discounts. The more LEO you hold, the greater your discount on trading, lending, and withdrawal fees.
Trading Fee Discounts
LEO holders receive up to 25% off taker fees and up to 15% off maker fees depending on their LEO balance tier. These discounts apply to spot, margin, and derivatives trading on Bitfinex.
Lending Fee Reduction
LEO holders also receive reduced fees on Bitfinex's peer-to-peer lending marketplace, where users can earn interest by lending their crypto assets.
Withdrawal Discounts
Withdrawal fee discounts are available for LEO holders, reducing the cost of moving funds off the Bitfinex platform.
Discount Tiers
The fee discount structure is tiered based on the average LEO balance held over 30 days. Higher tiers provide greater discounts across all fee categories.
Why UNUS SED LEO Has Value
LEO derives its value from several interconnected factors. First, the continuous burn mechanism creates constant buy pressure and a decreasing supply, which — all else being equal — puts upward pressure on price.
Second, LEO provides tangible utility through fee discounts on one of the world's largest cryptocurrency exchanges. Active Bitfinex traders can save significant amounts on fees, making LEO valuable as a cost-reduction tool.
Third, the token's economics are directly linked to iFinex's revenues, which include income from Bitfinex trading fees and from Tether operations. As Tether has grown to become the most widely used stablecoin with over $100 billion in circulation, the revenues funding LEO burns have increased substantially.
How to Buy LEO
LEO is primarily traded on Bitfinex, where its utility benefits apply. It's also available on some other exchanges.
1Compare providers
Use Coinvela to compare exchange rates and fees across platforms offering LEO. Bitfinex is the primary venue with the deepest liquidity.
2Create an account
Sign up on your chosen exchange and complete KYC verification. Bitfinex requires identity documents and proof of address.
3Fund your account
Deposit funds via bank wire (fiat) or crypto transfer. On Bitfinex, bank wires support USD, EUR, GBP, and JPY.
4Buy LEO
Place a market or limit order for LEO/USD or LEO/USDT on your chosen exchange. Consider using limit orders for better prices on larger purchases.
5Secure Your LEO
You can keep LEO on the exchange to benefit from fee discounts, or withdraw to a personal Ethereum wallet for self-custody. The fee discount benefits only apply while LEO is held on Bitfinex.
Next step: Compare LEO exchange rates to find the best price.
How to Store LEO
Wallet Options for LEO
Since LEO is an ERC-20 token on Ethereum, it can be stored in any Ethereum-compatible wallet:
- • Exchange wallet (Bitfinex) Keep LEO on Bitfinex to maintain fee discount benefits. Convenient but relies on exchange custody.
- • Software wallets MetaMask, Trust Wallet, or other Ethereum wallets. Good for active use and DeFi interaction.
- • Hardware wallets Ledger or Trezor devices for maximum security and long-term holding.
Hardware Wallets
For long-term LEO storage, hardware wallets like Ledger or Trezor provide the highest security by keeping private keys offline. Both support ERC-20 tokens including LEO.
Exchange vs. Self-Custody
Unlike most tokens where self-custody is generally recommended, LEO presents a unique trade-off: keeping LEO on Bitfinex provides fee discount utility, while moving to self-custody provides better security but forfeits those benefits. Consider your trading activity when deciding.
Backup & Seed Phrase
If using a personal wallet, always back up your seed phrase and store it securely offline. Losing access to your private keys means losing access to your LEO tokens permanently.
How to Use UNUS SED LEO (LEO)
Trading Fee Discounts
The primary use case for LEO is reducing trading fees on Bitfinex. Hold LEO in your Bitfinex account to automatically receive tiered fee discounts on spot, margin, and derivatives trading.
Lending Fee Reduction
LEO holders benefit from reduced fees on Bitfinex's peer-to-peer funding marketplace, where users can earn interest on crypto lending.
Trading & Investment
LEO can be traded as a speculative asset. Its price is influenced by the burn rate, iFinex revenues, and overall market conditions. Some investors hold LEO as a proxy for exposure to iFinex/Tether's business performance.
Risks
LEO carries risks including regulatory uncertainty around iFinex and Tether, concentration of utility on a single exchange (Bitfinex), limited availability on other platforms, and the inherent counterparty risk of relying on a centralized entity's revenue commitments. Past legal actions (NYAG settlement) highlight ongoing regulatory scrutiny of the iFinex group.
Notable People Behind LEO & iFinex
Several key figures have shaped LEO and the broader iFinex ecosystem:
Paolo Ardoino
Paolo Ardoino is the CTO of Bitfinex and, since 2023, the CEO of Tether. An Italian software engineer, Ardoino joined Bitfinex in 2014 and has been instrumental in the exchange's technical development. He is the most public-facing figure in the iFinex group and has become a prominent voice in the cryptocurrency industry, particularly regarding stablecoin regulation and adoption.
Jean-Louis van der Velde
JL van der Velde served as CEO of Bitfinex and iFinex for many years, overseeing the company through the 2016 hack, the Crypto Capital crisis, and the LEO token launch. A Dutch businessman based in Hong Kong, van der Velde maintained a low public profile. He stepped down as Tether CEO in 2023, with Paolo Ardoino succeeding him.
Giancarlo Devasini
Giancarlo Devasini is the CFO and a major shareholder of iFinex. An Italian former plastic surgeon turned tech entrepreneur, Devasini is widely considered the financial architect behind both Bitfinex and Tether. He is one of the most influential yet least visible figures in the cryptocurrency industry.
Regulation Overview for UNUS SED LEO
Exchange Token Regulation
Exchange utility tokens like LEO exist in a regulatory gray area in many jurisdictions. Unlike securities, LEO does not provide ownership, dividends, or governance rights. However, regulators worldwide are increasingly scrutinizing exchange tokens and their classification.
Regulatory Landscape by Country
LEO's regulatory status varies by jurisdiction:
United States: Bitfinex does not serve US customers. LEO's status under US securities law remains unclear, though it was not offered to US persons in the original token sale.
Canada: LEO is available to Canadian users through international exchanges. It is subject to general cryptocurrency regulations under provincial securities commissions.
European Union: Under MiCA (Markets in Crypto-Assets regulation), exchange tokens may face new disclosure and reserve requirements. iFinex will need to comply with MiCA provisions for EU operations.
Australia: LEO is accessible to Australian users through international platforms. AUSTRAC oversees cryptocurrency exchange registration and AML/KYC compliance.
iFinex Regulatory History
iFinex has faced regulatory scrutiny, notably the 2021 settlement with the New York Attorney General's office, where Bitfinex and Tether paid an $18.5 million fine without admitting wrongdoing. The settlement restricted iFinex from serving New York residents.
Despite this, iFinex has continued to operate and has engaged more actively with regulators, particularly around Tether's reserve transparency.
FAQs About UNUS SED LEO (LEO)
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